UK van market returns to growth as EV gap persists

The UK light commercial vehicle (LCV) market recorded a positive first half of 2026, with registrations returning to growth, although the industry has warned that electric van adoption remains significantly behind government targets.

According to the latest figures from the Society of Motor Manufacturers and Traders (SMMT), 31,602 new vans, pickups and 4x4s were registered in June, an increase of 12.2% compared with the same month last year.

The result marked the third consecutive month of growth, lifting first-half registrations by 1.7% to 158,648 units and reversing the decline seen during the first six months of 2025.

Growth in June was driven by strong demand for larger vans. Registrations of vehicles weighing between 2.5 and 3.5 tonnes rose 12.6% to 21,951 units, while medium-sized vans recorded the strongest increase, climbing 62.1% to 6,795 units. Registrations of 4x4s also increased by 20.8%.

By contrast, demand for smaller vans weighing less than two tonnes fell by 19.3%.

The pickup market continued to experience significant pressure, with registrations declining by 57.6% to just 1,167 units. Pickups accounted for only 3.7% of the overall LCV market in June, down from 9.8% a year earlier.

The SMMT attributed the continued decline to changes in the tax treatment of double-cab pickups, following their reclassification for Benefit-in-Kind and capital allowance purposes. The organisation said the policy continues to affect sectors including construction, agriculture and utilities, and reiterated its call for the government to reverse the changes to encourage fleet renewal and the adoption of lower-emission vehicles.

Battery electric van registrations continued to grow, rising 23.2% year-on-year to capture an 11.5% market share in June.

Across the first six months of 2026, battery electric vans accounted for 9.9% of new registrations, up from 8.6% during the same period last year. However, this remains well below the 24% market share required under this year’s Zero Emission Vehicle (ZEV) Mandate.

According to the SMMT, electric vans would need to achieve an average market share of around 40% during the second half of the year to meet the annual target – approximately four times current demand levels.

While manufacturers have significantly expanded the range of electric vans available to businesses, the organisation said adoption continues to be constrained by higher upfront purchase costs, concerns around charging infrastructure and ongoing operating cost pressures.

The SMMT believes the assumptions underpinning the current mandate no longer reflect prevailing market conditions and has called for urgent reforms to support both decarbonisation and industry competitiveness.

“The market’s return to growth is encouraging, but it comes against a backdrop of lower volumes and significant market disruption over the past 18 months, not least the sharp fall in pickup demand after tax changes.

“While businesses continue to invest in new vans, zero emission uptake remains well below ambition, holding back the fleet renewal needed to deliver net zero. A successful transition requires regulation, infrastructure and incentives to work together, giving operators the confidence to invest.

“With the gap between targets and demand continuing to widen, urgent reform of the mandate is needed to keep the transition on track.”